Financial news

Trading for the mid week session at the Malta Stock Exchange resulted in a negligible increase of the Index which rose by a mere 0.05 per cent to close practically unchanged at 3,011 points. Trading was relatively muted with activity spread over an aggregate 18 deals in four active listings.

HSBC Bank Malta was the day's sole gainer as it increased by a marginal 1c or 0.4 per cent to terminate the session at €2.60. The equity was trading at an intra-day low of €2.56 when fresh buying activity in the final moments of the session pushed the price to its current standing. Activity for the bank was, however, low with just 1,900 shares struck across two deals.

Bank of Valletta registered a 1c loss to its share price which equates to a 0.4 per cent drop, to end the day at €2.38. Investors swapped a total of 3,250 shares over six deals for a market consideration of €7,735. Yesterday, the bank announced that it had published a prospectus in respect of a 10-year 5.35 per cent Subordinated Bond issue of €35,000,000 with a nominal value of €100 each bond issue at par, and subject to an over-allotment option not exceeding €15,000,000. Simonds Farsons Cisk was also active for the day albeit on low volume when 1,000 shares were swapped across a single transaction for a market consideration of €1,868.

Go was the most liquid and actively traded equity during the session with activity spread over nine and a market value of €13,034. The quadruple play communications' company was a non-mover during the day as its price closed unchanged at €1.73.

In the fixed interest sector of the market, activity was spread over nine government stocks and three corporate bonds. The best performer in the corporate debt issues was registered in the dollar denominated 8% Bank of Valletta US$ 2010 which rose by 100 ticks over a single deal to close at $104.00.

Weekly UK economic review

The economic data emanating from the United Kingdom was dominated by the quarterly report issued by the Bank of England on the projected rise in inflation for the coming years. The report reflects the current state of the economy and broader issues of economic recovery in the months ahead following interest rate cuts and various quantitative easing measures.

British inflation is expected to rise by just one per cent in two years' time and the economy to shrink more steeply than expected in the coming months. Inflation forecasts at 1.6 per cent are higher now than that estimated in February when inflation projections stood at 1.1 per cent. This level is still however well below the targeted two per cent level of inflation. The projected distribution for GDP growth was also weaker than expected in the February report, reflecting a lower rate of economic recovery than was previously foreseen.

Meanwhile, the Monetary Policy Committee in England also revised economic growth downwards at -4.5 per cent year-on-year during the current quarter from the previous indication which stood at -3.85 per cent.

Official data published by the Office of National Statistics on the consumer price inflation for the month of April revealed that headline inflation declined to its lowest level in more than a year in April, resulting from a slump in both food and energy prices. In fact, consumer prices rose by 0.2 per cent on the month, bringing the annual rate down to 2.3 per cent from 2.9 per cent in March.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.